The SkyBridge Capital fund has filed an application with the US Securities and Exchange Commission (SEC) to launch a crypto-based exchange-traded fund (ETF). The ETF’s hallmark is that it aims at investing in shares of companies operating in the digital currency space, rather than directly purchasing Bitcoin (BTC), Ethereum (ETH), other cryptographic assets or related futures.
SkyBridge Capital is a global investment company based in New York, USA. It is run by Anthony Scaramucci, Brett S. Messing, Raymond Nolte and Troy Gaveski.
Earlier this year, the hedge fund filed an application with the SEC to launch a new ETF to invest in shares of companies operating within the crypto space.
SkyBridge Capital does not offer direct BTC exposure, which may be slightly more amenable from the SEC’s viewpoint. At least the company’s representatives are counting on that.
According to Beincrypto, SkyBridge Capital has also stated that despite the fact that cryptocurrencies are a promising and rapidly developing industry, there are still many risks associated with this recently-emerged technology.
As regards the SEC, currently the Commission is designing a regulatory framework for the crypto industry. It is likely that the provisions of the bill will be published by the end of this year.
SkyBridge Capital’s application is just one of many crypto-based ETF applications filed with the SEC. Considering the fact that the Commission, being the financial regulator that is not burdened with any deadlines, constantly postpones its decisions, the hedge fund will have to school itself in patience.
ETFs are, for the most part, considered to be safe from counterparty risk, which makes them a great low-risk investment tool. ETF products allow investors to earn on the crypto fluctuations while staying protected by the regulatory framework.
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The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
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